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Stafford Loan
Congratulations on your wise decision to continue your education. A college education or technical training can boost your ability to get a good job, earn money and enjoy a better life. It's never too early to start planning for higher education.
One of the first things you need to do is find out what you're interested in. If you already know, you're ahead of the game. If not, a personality inventory might help. Contact your school counselor to find out more.
If you have certain careers in mind, talk with people who work in those careers to find out how much education was involved and whether they like what they're doing. You can also do a little research now. Check out the Occupational Outlook Handbook, available online at www.bls.gov/oco.
Even if you don't settle on a career until you're in college, that's OK. Lots of students go to college intending to major in a certain field, then find out there's something they like better and want to make a career doing.
Let us help you achieve your goals by choosing the Alabama College Loan Program as your lender (lender #834281).
Federal Stafford Loan (Subsidized and Unsubsidized)
The following is a comprehensive listing of information for those interested in applying for a Federal Stafford Loan. Subsidized Stafford loans are based on need; unsubsidized loans are not.
What We Offer
- 0% origination fee
- 1% federal default fee
- 0.25% interest rate reduction for auto debit
The Advantages of Working with the Alabama College Loan Program
- Quick application processing
- Quality servicing for the life of the loan
-
Repayment Incentives
Borrower Eligibility
- Must be a undergraduate or graduate student enrolled at least half-time in a degree or certificate program, and
- Be a U.S. citizen, permanent resident or eligible non-citizen
Application Requirement
- Complete a Free Application for Federal Student Aid (FAFSA) (This also applies for federal grants and work-study, as well as for many state financial aid programs.)
- Complete a Plus Master Promissory Note. You can do this online or print out a paper copy.
Maximum Stafford Loan Amounts per Year (as of July 1, 2008):
| Annual limits
Maximum amounts for each year of study |
|||
| Grade Level | Subsidized | Total subsidized and unsubsidized |
|
| Dependent undergraduates1 | |||
| First Year | $3,500 | $5,500 | |
| Second year | $4,500 | $6,500 | |
| Third year and beyond | $5,500 | $7,500 | |
| Independent undergraduates2 | |||
| First Year | $3,500 | $9,500 | |
| Second year | $4,500 | $10,500 | |
| Third year and beyond | $5,500 | $12,500 | |
| Graduate and professional students | $8,500 | $20,500 | |
| Aggregate limits3
Maximum amounts over academic career |
|||
| Dependent undergraduates | $23,000 | $31,000 | |
| Independent undergraduates2 | $23,000 | $57,500 | |
| Graduate and professional students | $65,500 | $224,0004 | |
1All undergraduate annual loan limits are subject to proration.
2And dependents whose parents are unable to borrow PLUS loans.
3If the borrower does not meet financial need for a subsidized Stafford Loan using the expected family contribution (EFC), or has reached the aggregate limit in subsidized Stafford loans, the borrower may receive this entire loan amount in unsubsidized Stafford loans provided the borrower has remaining eligibility.
4For students enrolled in certain health professional programs.
Interest Rate
Interest for Subsidized loans is generally paid by the U.S. Department of Education (ED) while you are in school. ED does not pay the interest for Unsubsidized loans, which means you are reponsible for the accrued interest. If you do not pay the interest while in school, interest is capitalized (added to the principal balance).
As of July 1, 2009, the interest rate on subsidized Stafford Loans for undergraduate students is 5.6%. the interest rate on unsubsidized Stafford Loans for undergraduate students is 6.8%. The interest rate on both subsidized and unsubsidized Stafford Loans for graduate students is 6.8%.
Loans disbursed before July 1, 2006, have a variable interest rate that changes every year. The variable rate is based on the 91-day Treasury bill rate. Your lender will let you know each year what the new interest rate is on any variable-rate loans you have.
Repayment
Loans convert to repayment six months after you leave school or drop below half-time status. The maximum repayment period is 10 years buy may be extended for unusual circumstances.
Billing
Convenient monthly statement
Fees
- 0% loan origination fee
- 1% federal default fee
Disbursement
The loan is disbursed in one of the following manners, depending on your school's preference:
- Individual check made payable to the student and sent to the school
- Master check made payable to the school representing loan proceeds for more than one student applicant
- Electronic Funds Transfer (EFT) snet to the school representing loan proceeds for more than one student applicant
Lender
The Alabama College Loan Program
Lender Code: 834281
Telephone Number
Loan Origination Loan Servicing
888.678.4625 800.693.8220